REMONDIS acquires the Der Grüne Punkt Group

Lünen/Cologne, 27 September 2018. REMONDIS SE & Co. KG is acquiring DSD – Duales System Holding GmbH & Co. KG (DSD). A corresponding purchase agreement was signed today. In the shape of REMONDIS and DSD, an internationally experienced service company for recycling and one of the pioneers and technology leaders in the field of plastics recycling are synergizing their capabilities and their know-how. With this transaction, the two companies are responding to the growth opportunities opened up in the fields of packaging design and plastics recycling in particular. Together, REMONDIS and DSD are aiming to optimize recycling for all substance flows and offer their customers a broader portfolio of services. By acquiring DSD, REMONDIS is returning to the dual systems’ market after an interval of four years. The transaction is still subject to approval by the anti-trust regulators. The contracting parties have agreed not to disclose the purchase price.

“The demand for recycled plastics will rise, and at the same time the market is reshaping itself. We are anticipating from this takeover, not least against the background of the new German Packaging Act, an intensifying trend towards package recycling,” says Herwart Wilms, Managing Director of REMONDIS SE & Co. KG. “Together, DSD and REMONDIS unite the strength and the know-how to benefit from this development and to further progress the closed-cycle economy.”

Michael Wiener, CEO of DSD, adds: “We are looking forward to being part of the REMONDIS family in future. DSD had already identified recycled plastics as an up-to-the-future market very early on. REMONDIS is the right partner for achieving our goal of offering top-quality recycled plastics on an industrial scale.”

The company’s name will be retained, as will the “Der Grüne Punkt” trademark. DSD’s entire management team will be staying on board as a long-term commitment in order to shape the company’s future development in conjunction with REMONDIS. There are no plans for payroll downsizing or relocating DSD’s registered office. On the contrary: investments are being planned for achieving the shared goals.

The disposal and recycling industry in Germany and Europe is facing radical changes, due to the ambitious political targets laid down in the German Packaging Act and the European Union’s Circular Economy Package. Some of the biggest dual-system operators by market share are already owned by large disposal conglomerates. Moreover, the Schwarz Group recently took over Germany’s fifth-largest recycling company, Tönsmeier, and intends to establish a dual system of its own through its GreenCycle subsidiary. Chinese companies have bought their way into the German market through German investment companies. At the same time, the market dominance of the erstwhile monopoly operator DSD has to be substantially re-appraised in the light of the new situational context. In competition with eight dual systems, DSD’s annual result nowadays lies significantly below the level of mid-tier firms in the sector and medium-sized municipal enterprises like those in Dortmund, for example.

About Remondis SE & Co. KG:As a privately owned company for recycling, services and water, REMONDIS serves around 25 million people, and processes approximately 30 million tons of residual materials to make top-quality raw materials and products. Founded in 1934, the family firm has an international presence and employs more than 32,000 staff for an annual turnover of 6.1 billion euros (2016). REMONDIS prioritizes mutually supportive concepts, new ideas and up-to-the-future perspectives, so as to make a significant contribution towards supplying raw materials and water to future generations.

About the Der Grüne Punkt Group: The companies of Der Grüne Punkt are service providers for extended producer responsibility, leading suppliers of secondary raw materials for plastics, and premium producers of plastic recyclates, and as such positioned as the premier solution providers for the needs of the closed-cycle economy. Der Grüne Punkt – Duales System Deutschland GmbH (DSD) is the market leader of the dual systems in Germany, and stands for intelligent take-back systems, plus the development and marketing of innovative recyclates and services. Systec Plastics, at its facilities in Eisfeld and Hörstel, produces premium-quality recyclates under the Systalen brand name for the international market. The companies are grouped together in DSD – Duales System Holding GmbH & Co. KG.